Jarvis Law Office

Desmond Tutu Seeks Right to Take Own Life at His Discretion

Desmond Tutu, now retired, once led the Truth and Reconciliation Committee in South Africa and won the Nobel Peace Prize in 1984. Now he has taken on a new cause of physician-assisted suicide and advocates the right to take his own life, according to The Guardian in "Desmond Tutu: I want right to end my own life through assisted dying."

Physician-assisted suicide is perhaps the most controversial topic in elder law. Advocates and the elderly themselves are deeply divided over the issue. Doctors and other medical professionals who might be called upon to assist the terminally ill to take their own lives are also deeply divided on the issue.

In the U.S. only a handful of states have passed laws allowing the practice. It is illegal in most states and in most countries. Recently, the U.K. refused to allow it despite polls showing overwhelming public support for it.

This issue is unlikely to be resolved in the near future.

Reference: Guardian (Oct. 7, 2016) "Desmond Tutu: I want right to end my own life through assisted dying."

Housing Minister Favors Leaving Estate to Grandchildren

Because there is a housing shortage in the U.K. Gavin Barwell, the Housing Minister, has urged older people to skip a generation and leave their estate to grandchildren, giving them a head start toward property ownership, according to The Telegraph in "Inheritance should skip a generation, says minister."

The idea can still be helpful to some families in the U.S. as well. Despite being the most educated generation in history, many Millennials are having a difficult time getting started with their careers as they are still affected by fallout from the recession of 2007 to 2009. For older Americans whose children have good careers and means of their own, it might be a good idea to skip a generation and leave their wealth to their grandchildren.

Anyone who does this, however, should make certain the entire family is aware of the plan and in basic agreement or there could be problems in the family.

Reference: The Telegraph (Oct. 9, 2016) "Inheritance should skip a generation, says minister."

Court Fights are Over for Sumner Redstone for Now

Sumner Redstone has faced many battle over his mental competency this year but the battle appears to be over, at least for a while, according to Private Wealth in "Redstone Ends Trust Battle After Meeting with Granddaughter."

Redstone’s troubles began when his estranged daughter came back into his life and his estate plan was rewritten in her favor.

The first case was filed by a longtime girlfriend who was ousted from his home and care. Redstone won that battle, but almost immediately afterward faced another battle brought by shareholders of his companies who were upset that he ousted longtime friend Philippe Dauman from his position at Viacom. That case eventually settled when Dauman and others decided they did not have the resources to see it through.

That left the last case challenging Redstone's competency to be dealt with. It was brought by his granddaughter Keryn Redstone.

She claimed she had been forced out of Sumner's life by his daughter and that she was being treated unfairly in his estate plan. She has now agreed to drop her case after meeting with her grandfather. It remains to be seen whether the two reached any agreement to resolve any of her other claims.

While all legal challenges against Sumner Redstone are now concluded, it should not be assumed this is the end of the story entirely. Unless everyone resolves their differences, the battle over his estate after he passes away could get ugly.

Reference: Private Wealth (Oct. 7, 2016) "Redstone Ends Trust Battle After Meeting with Granddaughter."

Are Charitable Pledges Enforceable?

Duke University has filed a lawsuit against Aubrey McClendon’s estate to collect a $10 million pledge. In "History of Charitable Pledges," the Wills, Trusts & Estates Prof Blog considers the possible action of a court.

Wealthy people will sometimes make pledges for future donations to a university or charity. This allows the donor to keep assets, yet benefit from the pledge. A challenge can result when that pledge is not fulfilled.

Basically, courts will first look to see if there is an enforceable contract, either bilateral or unilateral. Failing that, the court might try to use a legal doctrine known as “promissory estoppel.” In layman's language that means something like, "You made a promise and the other party relied on it. You received some benefit from your promise, so you should not be able to disavow it."

The bottom line is that the legal system has a public policy preference of seeing that charitable pledges are fulfilled and will seek legal ways they can be enforced.

An estate planning attorney can guide you on donations you intend to make as part of your estate plan.

Reference: Wills, Trusts & Estates Prof Blog (Oct. 9, 2016) "History of Charitable Pledges."

IRS Rule Changes Draw Fire from Republicans

The Internal Revenue Service has made frequent attempts to have Congress act on valuation discounts that would increase some estate taxes but when unsuccessful, acted on its own. Some lawmakers are now moving to block the new regulations, according to Wealth Management in "Lawmakers Target Spending Bill to Block Estate Tax Rules."

At this point it is unclear whether the Republicans seeking to block the changes have the ability to get it done. If the bill is presented as a stand-alone piece of legislation, then it might be easy for President Obama to veto it unless a lot of Democrats in Congress get behind the bill.

However, Republicans might attempt to add this to another piece of legislation, such as a spending measure, that would be more difficult to veto. As of now, they are not certain what they will do.

Of course, the prospects for this bill and anything else having to do with the estate tax could change dramatically after the elections in November if either party scores a big victory.

Reference: Wealth Management (Oct. 5, 2016) "Lawmakers Target Spending Bill to Block Estate Tax Rules."

Prince Estate Becomes More Complex in Identifying Heirs

The list of potential heirs to Prince's estate has been narrowed down considerably as the judge in the case has thrown out many claims. However, that does not mean the issue of who will inherit a share of his fortune is entirely settled.

While the long list of possible heirs to the fortune left behind by Prince has been reduced, it has been potentially expanded by the laws of Minnesota, according to the Twin Cities Pioneer Press in "In Prince estate case, blood relation might be unnecessary."

Due to a unique feature in Minnesota's family law it is possible the descendants of Duane Nelson could be declared to be related to Prince and receive a share of his estate even though Nelson is not a biological relative of Prince.

Under Minnesota law someone who is treated as a child can be legally declared a child even if they are not biologically a child. Duane Nelson was previously thought to be Prince's half-brother through his father, but it now appears Nelson was not. Interestingly, Nelson’s birth certificate lists Prince's father as his own.

If the judge decides that Nelson is related under the law, then Nelson's three children have a claim to a share in Prince's estate. The law itself gives little guidance for the judge to make a determination, so it is not clear how the court will rule.

Reference: Twin Cities Pioneer Press (Sept. 29, 2016) "In Prince estate case, blood relation might be unnecessary."

Setting up a Memorial Fund Can Be a Challenge

Setting up and maintaining a memorial fund to support charity can have its challenges but the New York Times recently published an article with tips on making it successful in "Honoring a Loved One with a Charitable Fund," including:

• Crowdsource Collections - Several different websites can be used to collect money online. Utilizing them is a good way to reach thousands of potential donors quickly.
• Outsource Management - A memorial fund requires a lot of time and effort to maintain legally. Professional management companies can be used to take care of everything, but they can be expensive.
• Outsource Paperwork - Other professional agencies will allow families to say how the fund’s assets should be distributed and take care of all of the required paperwork. These donor-advised funds are a good intermediate option for many families not wanting to give complete control of the fund over to a management company.

An estate planning attorney can guide you through the process that leaves your loved ones honored in a lasting way.

Reference: New York Times (Sept. 30, 2016) "Honoring a Loved One with a Charitable Fund."

No More Estate Tax in New Jersey

As wealthy citizen reach retirement age and consider moving to warmer climates, the states in the north fear they risk losing their wealthiest residents to states such as Florida with little or no estate taxes. 

As a result, New Jersey has decided to eliminate its estate tax entirely as nj.com reports in "7 things you need to know about N.J.'s 23-cent gas tax hike deal."

The estate tax exemption will be raised in 2017 and the tax will be eliminated completely in 2018. New Jersey will also be decreasing taxes on retirement income. These and other tax changes will be offset by increasing the state's gas tax considerably.

Reference: nj.com (Oct. 10, 2016) "7 things you need to know about N.J.'s 23-cent gas tax hike deal."

A Living Will Needs to Be a Job Well Done

A living will, also known as an advanced medical directive, is important when it comes to planning for end-of-life care. However, if not done well can be ineffective as Wealth Management discusses in "What Advisors Need to Know about Living Wills."

For your living will to be effective when you need it there are a few things you should consider. First, it is a good idea to be as specific as possible in the document. Detail exactly what treatments you do and do not want to authorize in advance.

You also need to let other people know you have a living will. If you stick it in a desk drawer without telling anyone, then no one will know to give it to medical professionals at the appropriate time.

Finally, every state has its own laws concerning living wills. In some states you must use official forms. In every state, even if official forms are not required, specific language must be included in a valid living will document.

An estate planning attorney can be helpful in guiding you in creating a plan that includes an advanced medical directive that fits your unique circumstances.

Reference: Wealth Management (Sept. 27, 2016) "What Advisors Need to Know about Living Wills."

There Is Room for Religion in an Estate Plan

According to Wealth Management in "Religion and Estate Planning," religion and estate planning can intersect.

This may be particularly important if you have minor children. You might want to ensure that funds are available for religious schooling.

Also, some religions have specific instructions about how property should be divided between heirs and others have prohibitions on collecting interest that might be relevant to allowable transactions the estate can make.

As there are many different religions and many different levels of belief, it is impossible to list every possible example.

What does all this mean to you? If you want to make sure your religious beliefs are reflected in your estate plan, then you need to hire an estate planning attorney and let the attorney know what your beliefs are.

An estate planning attorney can guide you in an estate plan that reflects your beliefs.

Reference: Wealth Management (Sept. 27, 2016) "Religion and Estate Planning"